The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1887-03-23

bonds bearing per cent interest; the price
of issue was 9215. The whole amount was
not taken by the public. The commission
paid by the japanese Government was ~
per cent. All expenses, including stamps,
were paid in addition by the Government
These are estimated at per cent. have
been unable to obtain the exact figures in
this case 1t is computed, however, that
Japan did not receive more than 81 cents
per dollar on this first issue of Z per cent
bonds
The Argentine Republic brought out
5 per cept loan in London through the
houses of Earrings and ] S. Morgan q Co
The price of issue was so per cent. The
commission paid by the Government was
10 per cent. The Argentine Republic
therefore only got 20 cents per dollar for
its 5 per cent bonds, but only one-ha1 the
bonds were subscribed for by the public.
The security in this case was the Customs
duties specially Hypothetical and paid to
the receiver of the bondholders.
A6per cent loan of the Peruvian Gov
eminent was issued at 82A per cent. Sc
curity, Customs dues, railways and sur
plus profits on the guano deposits, all be-
ing in the hands of receivers for the bond
holders. The commission paid by the Pc
ruvian Government was per cent The
expenses paid in addition amounted to 3
| per cent, exclusive OF stamps. The Peru
Wan Government issued a further loan
bearing 5 per cent interest; the
price of issue was 7713 per cent;
the security was the same as
the former loan, and absolute hypothe
cation of railways, public works and guano
deposits. The Peruvian Government re-
| ceived exactly so per cent as produce of
this loan, which was equivalent to paying
10 per cent per annum interest ON its
bonds.
The Buenos Ayres 6 per cent loan for
IS, 254, 600 was issued at 81 per cent. The
security was harbOr revenues and works
specially hypothecated, also surplus reve-
nues of railways, as well as the general
revenues of the country. The commission
paid by the Government of Buenos Ayres
on this loan 10 per cent. 1t will be
seen that the commission on this loan
| amounted to more than the gross total of
| the Hawaiian loan recently issued in Lon
| don.
| The Liberian Government came to Lon
don to borrow 100000 on bonds bearing
! Z per cent interest. This loan was issued
at IS per cent. The security was the Gus
toms revenues and the poll tax of 81 upon
all male citizens specially hypothetical to
the service of this debt. The Liberian
| Government paid per cent commission
and 4 per cent additional for expenses,
and melted II cents per dollar for it's per
| cent bonds.
! 1t would be easy to multiply examples,
! but | refrain from any further trespasS on
! your valuable space. | trust that have
sufficiently demonstrated that an issue of
the Hawaiian loan bearing per
cent interest at 80 per cent and
a payment of 5 per cent commits
sion to the syndicate which took it
and guaranteed its public subscription was
not an unfayorable transaction for the Ha-
waiian Government when it is seen that
! countries which are far better known and
whose population and resources are much
| greater have been content not only to ac-
| cept less favorable terms and to pay niue h
higher commissions and expenses, but
! have consented, in most cases, to the hui
| initiation and embarrassment of having
their revenues collected by the agent OF
the bondholders. l may add that similar
conditions were attempted to be imposed
upon the negotators OF the Hawaiian loan,
and it is due to the credit, influence and
reputation of Hawaii and it's friends on
this side that such proposals were success
fully resisted.
l have the honor to remain, your obedi-
ent servant A. HOFFNUEG.
LONDON, February o. 1887.